To calculate the total proceeds of IPO. Introduction: Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

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Answer 1

Question

Chapter 2, Problem 1SE

a)

Summary Introduction

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

b)

Summary Introduction

To discuss:

To calculate the percentage underwriter discount.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm

c)

Summary Introduction

To discuss:

To calculate the dollar amount of the underwriting fee.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm.

d)

Summary Introduction

To discuss:

To calculate the net proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The net proceeds is the difference between the total proceeds and the underwriting fees.

Net Proceeds=Total proceeds−total underwriting fee

e)

Summary Introduction

To discuss:

To calculate the IPO underpricing.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The percentage change from the final IPO offer price to the IPO market price on the first day in the market is known as IPO underpricing.

IPO underpricing=(Market price−Offer price)Offer price

f)

Summary Introduction

To discuss:

To calculate the market capitalization.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The market capitalization is the total market value of the firm’s outstanding stock.

Market Capitalization=Market price×Number of outstanding stocks

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On September 28, 2017, Roku Inc. (NASDAQ: ROKU) concluded its initial public offering (IPO) of 15,900,000 shares of its Class A common stock and realized net proceeds of approximately $219,420,000. The par value per Class A common stock share is $0.0001. Assume that the market price on the issue date was $13.80 per share. Ignore underwriting and other expenses resulting from the IPO. Questions What is the impact on Roku's balance sheet from its IPO? Does this IPO have any direct impact on Roku's net income? On what section of Roku's statement of cash flows will the cash proceeds from the IPO appear? Will it be an increase or decrease in that section?

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#23 On April 13, 2017, Yext inc. completed its IPO on the NYSE. Yext sold 11,800,000 shares of stock at an offer price of $9.21 per share. Yext's closing stock price on the first day of trading on the secondary market was $13.39. a. Calculate the gross procceds for Yext's IPO. b. Calculate Yext's IPO underpricing. c. Calculate the money left on the table for Yext's IPO.

Answer 2

Question

Chapter 2, Problem 1SE

a)

Summary Introduction

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

b)

Summary Introduction

To discuss:

To calculate the percentage underwriter discount.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm

c)

Summary Introduction

To discuss:

To calculate the dollar amount of the underwriting fee.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm.

d)

Summary Introduction

To discuss:

To calculate the net proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The net proceeds is the difference between the total proceeds and the underwriting fees.

Net Proceeds=Total proceeds−total underwriting fee

e)

Summary Introduction

To discuss:

To calculate the IPO underpricing.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The percentage change from the final IPO offer price to the IPO market price on the first day in the market is known as IPO underpricing.

IPO underpricing=(Market price−Offer price)Offer price

f)

Summary Introduction

To discuss:

To calculate the market capitalization.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The market capitalization is the total market value of the firm’s outstanding stock.

Market Capitalization=Market price×Number of outstanding stocks

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Answer 3

Question

Chapter 2, Problem 1SE

a)

Summary Introduction

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

b)

Summary Introduction

To discuss:

To calculate the percentage underwriter discount.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm

c)

Summary Introduction

To discuss:

To calculate the dollar amount of the underwriting fee.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm.

d)

Summary Introduction

To discuss:

To calculate the net proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The net proceeds is the difference between the total proceeds and the underwriting fees.

Net Proceeds=Total proceeds−total underwriting fee

e)

Summary Introduction

To discuss:

To calculate the IPO underpricing.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The percentage change from the final IPO offer price to the IPO market price on the first day in the market is known as IPO underpricing.

IPO underpricing=(Market price−Offer price)Offer price

f)

Summary Introduction

To discuss:

To calculate the market capitalization.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The market capitalization is the total market value of the firm’s outstanding stock.

Market Capitalization=Market price×Number of outstanding stocks

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Answer 4

Question

Chapter 2, Problem 1SE

a)

Summary Introduction

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

b)

Summary Introduction

To discuss:

To calculate the percentage underwriter discount.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm

c)

Summary Introduction

To discuss:

To calculate the dollar amount of the underwriting fee.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm.

d)

Summary Introduction

To discuss:

To calculate the net proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The net proceeds is the difference between the total proceeds and the underwriting fees.

Net Proceeds=Total proceeds−total underwriting fee

e)

Summary Introduction

To discuss:

To calculate the IPO underpricing.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The percentage change from the final IPO offer price to the IPO market price on the first day in the market is known as IPO underpricing.

IPO underpricing=(Market price−Offer price)Offer price

f)

Summary Introduction

To discuss:

To calculate the market capitalization.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The market capitalization is the total market value of the firm’s outstanding stock.

Market Capitalization=Market price×Number of outstanding stocks

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Answer 5

Chapter 2, Problem 1SE

a)

Summary Introduction

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

b)

Summary Introduction

To discuss:

To calculate the percentage underwriter discount.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm

c)

Summary Introduction

To discuss:

To calculate the dollar amount of the underwriting fee.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm.

d)

Summary Introduction

To discuss:

To calculate the net proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The net proceeds is the difference between the total proceeds and the underwriting fees.

Net Proceeds=Total proceeds−total underwriting fee

e)

Summary Introduction

To discuss:

To calculate the IPO underpricing.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The percentage change from the final IPO offer price to the IPO market price on the first day in the market is known as IPO underpricing.

IPO underpricing=(Market price−Offer price)Offer price

f)

Summary Introduction

To discuss:

To calculate the market capitalization.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The market capitalization is the total market value of the firm’s outstanding stock.

Market Capitalization=Market price×Number of outstanding stocks

Answer 6

Chapter 2, Problem 1SE

a)

Summary Introduction

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

Answer 7

Chapter 2, Problem 1SE

a)

Summary Introduction

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

Answer 8

b)

Summary Introduction

To discuss:

To calculate the percentage underwriter discount.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm

Answer 9

b)

Summary Introduction

To discuss:

To calculate the percentage underwriter discount.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm

Answer 10

c)

Summary Introduction

To discuss:

To calculate the dollar amount of the underwriting fee.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm.

Answer 11

c)

Summary Introduction

To discuss:

To calculate the dollar amount of the underwriting fee.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The underwriting discount is the fee paid to the underwriters by the issuing firm.

Answer 12

d)

Summary Introduction

To discuss:

To calculate the net proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The net proceeds is the difference between the total proceeds and the underwriting fees.

Net Proceeds=Total proceeds−total underwriting fee

Answer 13

d)

Summary Introduction

To discuss:

To calculate the net proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital. The net proceeds is the difference between the total proceeds and the underwriting fees.

Net Proceeds=Total proceeds−total underwriting fee

Answer 14

e)

Summary Introduction

To discuss:

To calculate the IPO underpricing.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The percentage change from the final IPO offer price to the IPO market price on the first day in the market is known as IPO underpricing.

IPO underpricing=(Market price−Offer price)Offer price

Answer 15

e)

Summary Introduction

To discuss:

To calculate the IPO underpricing.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The percentage change from the final IPO offer price to the IPO market price on the first day in the market is known as IPO underpricing.

IPO underpricing=(Market price−Offer price)Offer price

Answer 16

f)

Summary Introduction

To discuss:

To calculate the market capitalization.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The market capitalization is the total market value of the firm’s outstanding stock.

Market Capitalization=Market price×Number of outstanding stocks

Answer 17

f)

Summary Introduction

To discuss:

To calculate the market capitalization.

Introduction:

A public offering is defined as the sale of bonds or stocks to the general public when the company or firm that issues the share has to raise a large amount as capital. The market capitalization is the total market value of the firm’s outstanding stock.

Market Capitalization=Market price×Number of outstanding stocks

Answer 18

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Answer 19

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Answer 20

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Answer 21

Ch. 2.1 - What are financial institutions? Describe the role...Ch. 2.1 - Prob. 2.2RQ Ch. 2.1 - Describe the role of commercial banks, investment...Ch. 2.2 - What role do financial markets play in our...Ch. 2.2 - Prob. 2.5RQ Ch. 2.2 - Prob. 2.6RQ Ch. 2.2 - Prob. 2.7RQ Ch. 2.2 - Describe the role of capital markets from the...Ch. 2.3 - Prob. 2.9RQ Ch. 2.3 - Prob. 2.10RQ

To calculate the total proceeds of IPO. Introduction: Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

Solution Summary: The author explains that initial public offering or IPO is the first public sale of a firm's stock.

Concept explainers

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

Want to see the full answer?

Chapter 2 Solutions

To calculate the total proceeds of IPO. Introduction: Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

Solution Summary: The author explains that initial public offering or IPO is the first public sale of a firm's stock.

Concept explainers

To discuss: To calculate the total proceeds of IPO. Introduction: Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.

Want to see the full answer?

Chapter 2 Solutions

To discuss:

To calculate the total proceeds of IPO.

Introduction:

Initial public offering or IPO is the first public sale of a firm’s stock. IPO is usually made by small and growing companies that require additional capital.